Ambassador Laurent Aublin yesterday met Commerce Minister Krirk-krai Jirapaet to ask the government to clarify its investment and trade policies, in particular on retail businesses.

Aublin was worried that the ministry's plan to control the expansion of retail giants would affect investor confidence, Krirk-krai said after the meeting.

Carrefour, a France-based retailer, is planning to open four more outlets in Thailand this year. The company, one of Thailand's top four retail enterprises, has about 23 outlets nationwide.

Krirk-krai explained to the ambassador that the ministry had set up a special committee to monitor retail and wholesale businesses and study amendments to the Foreign Business Act.

The review of the draft Retail Business Act should conclude next month, he said, adding that the law will be considered to ensure fairness to all parties involved, including foreign investors and traditional enterprises.

Earlier, the Thai government's plan to amend the foreign business law, in response to local concerns over the domination of foreign retailers, brought concerns to international retailers and embassies, which feared that the law may aim to protect local businesses at the expense of foreigners.

Meanwhile, as part of the government's aim to help traditional retailers, the ministry will hold a seminar to improve their efficiency.

The seminar titled "Cooperate: Develop Thai Retailers", next Wednesday at Impact Arena Muang Thong Thani, aims to improve local retailers' operations and help them understand the necessity to lift their standards to compete with multinational retailers.

About 1,000 local retailers are expected to participate in the event.

Krirk-krai said he expected the seminar would encourage Thai enterprises to realise the need to improve if they are to survive in the sector.

Thai retailers in each province and region should cooperate to improve their businesses together so that they will have more power to compete with multinational enterprises, he suggested.

"There are about 300,000 local retailers nationwide. The government will give full support to small retailers to forge cooperation in business," said Krirk-krai.

The Business Development Department reported that 60,529 retail and wholesale companies had closed between 2001 and October this year.

He advised small retailers nationwide to cooperate in distribution centres, and assist each other to increase their bargaining power with manufacturers.

Petchanet Pratruangkrai

The Nation